Hess Midstream LP (HESM) Earnings Call Transcripts

Hess Midstream LP's Latest Earnings Call - Q1 FY2026

In Q1 2026, Hess Midstream LP reported solid operational performance despite severe winter weather, achieving guidance targets. Revenue decreased due to weather impacts, but adjusted free cash flow guidance for FY 2026 was raised to $910-$960 million, reflecting a 20% YoY increase at the midpoint. The company completed a $60 million share repurchase and increased its distribution by 2%, or 8% annualized for Class A shares. Management maintained full-year guidance for net income and adjusted EBITDA, projecting higher volumes and EBITDA in H2 2026.

Reported metrics

Guidance from management

Management maintained full-year 2026 guidance for net income of $650-$700 million and adjusted EBITDA of $1.225-$1.275 billion. They expect higher volumes and EBITDA in H2 2026.

What management said

Yes. I think you're reading that right. There is an element of implied rates in there in the terminals. And that's -- as you recall, it's a cost of service rate that gets adjusted every year for our expectation of OpEx, CapEx and any volumes that drives a targeted return on that. So that's part of the reason why you're seeing better stronger performance there is just a tariff adjustment.

So that goes through to 2033, and it's rebalanced every year as part of a calculation that aims to return a specific like mid-teen return, and it will be based on what we anticipate as the actual volumes, CapEx, OpEx in order to serve that and to generate that return. So the tariffs reflect up and down accordingly. So if we have lower volumes anticipated, then the tariff will go up. And if we have lower CapEx, for ex...

What analysts pressed on

Analysts questioned the impact of reduced CapEx on growth expectations and the potential for inorganic opportunities. Concerns were also raised about the sustainability of terminaling revenue increases and the implications of Chevron's drilling efficiencies on Hess Midstream's business.

Main topics on the call

• Weather Impact on Operations — Severe winter weather in January and February affected throughput volumes, which were down compared to Q4 2025. However, volumes recovered in March, and management expects growth for the rest of the year. 'Throughput vol...
• Capital Expenditure Reduction — Hess Midstream reduced its 2026 capital expenditure estimate by one-third to approximately $100 million, citing efficiencies from longer laterals and reduced well connect CapEx. 'We have now reduced our 2026 estimated ca...
• Increased Free Cash Flow Guidance — The company raised its 2026 adjusted free cash flow guidance to $910-$960 million, a 20% increase YoY at the midpoint, due to reduced CapEx and deferred cash taxes. 'We are increasing our 2026 adjusted free cash flow gui...
• Distribution and Share Repurchase — Hess Midstream increased its distribution by 2% and completed a $60 million share repurchase, maintaining total distributed cash on a lower share count. 'We increased our distribution 2% or approximately 8% on an annuali...

Read the full Hess Midstream LP transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 26 Hess Midstream LP earnings call transcripts on record, spanning January 29, 2020 to August 3, 2026. Based on this history, Hess Midstream LP reports quarterly. The most recent call on file is dated August 3, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

HESM

Exchange

NYSE

Country

US

Sector

Energy

Industry

Oil, Gas and Consumable Fuels

Calls on record

26

First call

January 29, 2020

Most recent

August 3, 2026

Reporting cadence

quarterly